A Methodology to Implement Box-Cox Transformation When No Covariate is Available

Dag O., Asar O., İLK DAĞ Ö.

COMMUNICATIONS IN STATISTICS-SIMULATION AND COMPUTATION, vol.43, no.7, pp.1740-1759, 2014 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 43 Issue: 7
  • Publication Date: 2014
  • Doi Number: 10.1080/03610918.2012.744042
  • Journal Name: COMMUNICATIONS IN STATISTICS-SIMULATION AND COMPUTATION
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.1740-1759
  • Keywords: Data transformation, Maximum likelihood estimation, Non-informative covariate, Normality, Regression analysis, Statistical distributions, REGRESSION
  • Middle East Technical University Affiliated: Yes

Abstract

Box-Cox transformation is one of the most commonly used methodologies when data do not follow normal distribution. However, its use is restricted since it usually requires the availability of covariates. In this article, the use of a non-informative auxiliary variable is proposed for the implementation of Box-Cox transformation. Simulation studies are conducted to illustrate that the proposed approach is successful in attaining normality under different sample sizes and most of the distributions and in estimating transformation parameter for different sample sizes and mean-variance combinations. Methodology is illustrated on two real-life datasets.